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IMF Accounting of Gold Reserves: Issue Paper
An IMF position paper prepared by Hidetoshi Takeda of the organization’s statistics department in April 2006 recommends that swapped and loaned gold be excluded from Central Bank reserve total reports, and the recommendation will be considered at the IMF’s meeting in late 2006.
TREATMENT OF GOLD SWAPS AND GOLD DEPOSITS (LOANS)
Prepared by Hidetoshi Takeda, IMF Statistics Department, April 2006*
Currently, the IMF recommends, but does not require that swapped and loaned gold be excluded from reported reserve totals.
The conclusions of the IMF paper:
- The new Manual should include a clearer description of the treatments of gold swaps and gold deposits/loans
- Swapped gold should be excluded from both reserve assets and IIP (demonetization). This is a logical consequence, and overstating of reserve assets can be avoided. On the other hand, this results in a decrease in the financial assets of the monetary authorities.
- Regarding the statistical treatment of gold deposits/loans, keeping the status quo is suggested. That is, if the deposited/loaned gold is available upon demand to the monetary authorities, it can be included in reserve assets as monetary gold (paragraph 99 of the Guidelines). However, if the gold is not available upon demand, it should be removed from reserve assets, and also from IIP (demonetization).
- Regarding the statistical treatment of double counting, this issue would be resolved if the treatment in paragraphs 14 and 15 are adopted, except when the gold is available upon demand under gold deposits/loans.
*The full paper can be viewed by visiting:
http://www.imf.org/external/np/sta/bop/pdf/resteg11.pdf
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